What Happened to Air India?
Air India, founded by J.R.D. Tata in 1932, was India's national flag carrier for decades before facing significant financial challenges. After 69 years of government ownership, it was re-privatized and acquired by the Tata Group in January 2022, embarking on an ambitious transformation program to revitalize its operations, fleet, and service, including major mergers and fleet modernization efforts, though it continues to grapple with substantial losses as of 2026.
Quick Answer
Air India, once a struggling state-owned airline, was reacquired by its original founder, the Tata Group, in January 2022. Since then, it has undergone a massive transformation, including merging with Vistara, placing record-breaking aircraft orders, and upgrading its services. As of September 2026, the airline is actively modernizing its fleet and expanding its network, under a new CEO, Tewolde Gebremariam, despite reporting significant financial losses for the fiscal year 2025-26.
📊Key Facts
📅Complete Timeline15 events
Founded as Tata Airlines
J.R.D. Tata establishes Tata Air Services, later renamed Tata Airlines, pioneering aviation in India with its first flight carrying mail from Karachi to Mumbai.
Renamed Air India
Tata Airlines becomes a public limited company and is renamed Air India.
Nationalized by Indian Government
The Government of India nationalizes Air India under the Air Corporations Act, creating Air India International for long-haul routes and Indian Airlines for domestic services. J.R.D. Tata remains chairman.
First Asian Airline to Induct a Jet Aircraft
Air India takes delivery of its first Boeing 707, named Gauri Shankar, becoming the first Asian airline to operate a jet aircraft.
Merger with Indian Airlines and Financial Decline
Air India merges with domestic carrier Indian Airlines, forming National Aviation Company of India Ltd. (NACIL). This period marks the beginning of significant financial losses for the airline.
Acquired by Tata Group
After 69 years of state ownership, Air India is officially handed over to the Tata Group's subsidiary, Talace Private Limited, following a successful privatization bid.
Places Landmark Aircraft Order
Air India announces a historic order for 470 aircraft from Airbus and Boeing, including A320neo family, A350, 737 MAX, 787-9, and 777-9 models, as part of its 'Vihaan.AI' transformation.
Merger with Vistara Completed
The operational integration and legal merger between Air India and Vistara are successfully completed, creating a larger full-service carrier under the Air India brand. Singapore Airlines acquires a 25.1% stake in the enlarged Air India.
Additional Aircraft Order Placed
Air India places an additional order for 100 Airbus aircraft, comprising 10 A350s and 90 A320 family aircraft, bringing its total firm orders to 570.
Reports Significant Financial Loss for FY26
Air India reports a consolidated loss of approximately $2.8 billion (₹22,238 crore) for the financial year 2025-26, its largest since the Tata takeover, impacting partner Singapore Airlines' profits.
Tewolde Gebremariam Appointed CEO
Air India's Board of Directors announces the appointment of Tewolde Gebremariam, former CEO of Ethiopian Airlines, as the new Chief Executive Officer and Managing Director, succeeding Campbell Wilson.
New CEO Tewolde Gebremariam Takes Charge
Tewolde Gebremariam officially takes charge as the new CEO and Managing Director of Air India, marking a new phase in the airline's transformation journey.
Previews New Digital Inflight Experience Platform
Air India offers a preview of its 'Vista Digital Platform,' a next-generation connected in-flight entertainment and services ecosystem, set for phased introduction in FY2028.
Pilot Suspended for Failing Breathalyzer Test
Air India suspends a pilot for failing a breathalyzer test at Zurich airport before a flight to Delhi, reinforcing its zero-tolerance policy on substance use.
Introduces Boeing 787-9 on Toronto-Delhi Route
Air India begins deploying its new Boeing 787-9 aircraft on the Toronto-Delhi route, aiming to enhance passenger experience and increase market share in North America.
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🔍Deep Dive Analysis
Air India's journey began in 1932 as Tata Airlines, founded by aviation pioneer J.R.D. Tata, quickly establishing a reputation for quality service. Post-World War II, in 1946, it became Air-India Limited, and in 1948, Air-India International was launched for overseas routes. A pivotal moment arrived in 1953 when the Indian government nationalized all Indian airlines, including Air India, under the Air Corporations Act, splitting operations into domestic (Indian Airlines) and international (Air India International, later just Air India) carriers. J.R.D. Tata, however, remained chairman until 1977, maintaining a focus on high standards.
The airline enjoyed a period of prestige, being the first Asian carrier to induct a jet aircraft (Boeing 707) in 1960. However, with the opening of India's aviation sector to private players in the mid-1990s, Air India began to struggle, losing market share and accumulating losses. A merger with Indian Airlines in 2007, intended to create a stronger entity, instead led to further financial woes and operational inefficiencies, with the airline consistently posting losses.
After years of attempts, the Indian government finally succeeded in privatizing Air India, with Tata Group's subsidiary, Talace Private Limited, winning the bid in October 2021. The official handover occurred on January 27, 2022, marking its return to its founding conglomerate after 69 years. This acquisition initiated a comprehensive five-year transformation program called 'Vihaan.AI,' focusing on fleet modernization, network expansion, service upgrades, and cultural change.
Key developments post-privatization include a massive aircraft order of 470 planes from Airbus and Boeing in February 2023, followed by an additional order for 100 Airbus aircraft in December 2024, totaling 570 new aircraft. The Tata Group also consolidated its airline businesses, merging its low-cost carriers Air India Express and AirAsia India (now AIX Connect) in October 2024, and completing the merger of full-service carrier Vistara into Air India in November 2024. This consolidation created a unified Air India Group operating two main entities: a full-service Air India and a low-cost Air India Express.
Despite these strategic moves, Air India reported significant financial challenges, with consolidated losses widening to over ₹22,000 crore (approximately $2.8 billion) for the fiscal year 2025-26. The airline is actively working on fleet retrofitting, with a $400 million program to upgrade 67 legacy aircraft, and has been inducting new aircraft and expanding international routes, including new services to Vietnam and Japan in 2026. In a significant leadership change, Tewolde Gebremariam was appointed as the new CEO and Managing Director in August 2026, succeeding Campbell Wilson, and took charge in September 2026, tasked with leading Air India into its next phase of growth and profitability.
What If...?
Explore alternate histories. What if Air India made different choices?